Flowserve Corporation (FLS)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,500,820 | 5,274,560 | 5,164,480 | 5,149,920 | 5,108,720 | 4,965,210 | 4,920,020 | 4,875,750 | 4,790,630 | 4,505,990 | 4,582,730 | 4,703,010 | 4,749,770 | 5,595,920 | 4,818,670 | 4,809,640 | 5,314,680 | 5,173,580 | 4,755,700 | 4,762,070 |
| Total stockholders’ equity | US$ in thousands | 2,007,660 | 2,054,300 | 1,970,060 | 1,953,980 | 1,936,100 | 1,874,110 | 1,884,450 | 1,846,320 | 1,824,990 | 1,657,120 | 1,721,400 | 1,754,990 | 1,804,320 | 1,759,500 | 1,740,980 | 1,712,030 | 1,732,470 | 1,673,420 | 1,662,570 | 1,659,430 |
| Financial leverage ratio | 2.74 | 2.57 | 2.62 | 2.64 | 2.64 | 2.65 | 2.61 | 2.64 | 2.63 | 2.72 | 2.66 | 2.68 | 2.63 | 3.18 | 2.77 | 2.81 | 3.07 | 3.09 | 2.86 | 2.87 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,500,820K ÷ $2,007,660K
= 2.74
Flowserve Corporation's financial leverage ratio has exhibited some fluctuation over the years, ranging from a low of 2.57 to a high of 3.18. The ratio measures how much of the company's assets are financed by debt compared to equity.
It is noted that the company's financial leverage ratio increased from 2.87 in March 2020 to 3.09 in September 2020, indicating a higher reliance on debt during that period. However, there was a subsequent decrease in the ratio to 2.77 in June 2021, suggesting a reduction in debt relative to equity.
The ratio continued to fluctuate in the following years, with the most recent value being 2.74 as of December 31, 2024. This indicates that the company's debt levels relative to equity have reduced compared to the peak in September 2021 but are still higher than the starting point in March 2020.
Overall, a financial leverage ratio above 1 indicates a higher proportion of debt in the company's capital structure, which can magnify returns but also increase risk. It is essential for investors and analysts to closely monitor changes in this ratio to assess the company's financial health and risk profile.
Peer comparison
Dec 31, 2024